Sansad TV: India-Egypt Relations | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• The leaders of India and Egypt have agreed to increase their bilateral relationship to a Strategic Partnership which will include political, security, defence, energy and economic aspects. The decision was made during talks between Prime Minister Narendra Modi and Egyptian President Abdel Fattah El-Sisi, who was also the Chief Guest at India’s 74th Republic Day celebrations. The leaders discussed a wide range of issues, and five agreements were signed on cooperation in areas such as culture, IT, cyber security, youth matters, and broadcasting.
• They both agreed that terrorism is the most serious security threat to humanity and concrete measures are necessary to end cross-border terrorism. India and Egypt have a long history of close contact, dating back to ancient times, as two of the world’s oldest civilizations. India is interested in strengthening its ties with Egypt, a key player in both the Arab world and Africa.

Egypt has become a major foreign policy priority:

• India is providing support to Egypt's efforts for economic reconstruction. Both countries are closely cooperating in counter-terrorism and maritime security efforts in the Middle East, which is facing threats from piracy and Yemen unrest since the Arab Spring. 
• Egypt has expressed interest in purchasing Indian missiles, which could make the region, including Egypt, more secure. The safety and security of the Suez Canal route, which is crucial for Indian maritime exports to Europe, must be supported by India. 
• Maritime engagement is also being pursued through coordinated drills and exercises. Egypt's close ties with Israel provide an opportunity for India to engage with Egypt without upsetting Israel, which is a key strategic partner. Egypt's position as the largest oil producer outside OPEC makes it a valuable partner in helping India meet its energy demands.

Historical aspect

• India and Egypt have had a long history of close contact since ancient times, as evidenced by Ashoka's edicts. They share a close political understanding and have been important trading partners in Africa.
• Diplomatic relations between the two countries were established in 1947, and they played a key role in forming the Non-Aligned Movement in 1961. High-level exchanges continued even after the 2011 Egyptian Revolution and the new government led by President Sisi took over in 2014. 
• During President Sisi's state visit to India in 2016, a joint statement was issued, which outlined the three pillars of the new partnership: political-security cooperation, economic engagement and scientific collaboration, and cultural and people-to-people ties.

Egypt is beneficial for both the nation

• The recent visit of the Egyptian President to India is an important step towards balancing the Arab-Israel contact and enhancing India's strategic advantage in the Middle East. India's improved relations with Egypt can help in curbing terrorism through mutual cooperation and information sharing.
• India is also playing a vital role in the economic development of Egypt, with investment opportunities in banking, pharmaceuticals, and insurance sectors. Moreover, the strategic location of Egypt is important for India's trade with European nations, providing better job opportunities for the Indian diaspora.
• Recently, Exercise Cyclone-I, the first-ever exercise between the Indian Army and Egyptian Army, was held in Jaisalmer, indicating close military cooperation. Furthermore, India and Egypt have agreed to elevate their bilateral ties to a "Strategic Partnership," covering political, security, defense, energy, and economic aspects, and India has invited Egypt as a special guest for the G-20 summit.

Bilateral Trade Relations

• India and Egypt have a long-standing bilateral trade agreement since 1978 based on the most-favoured nation clause, making Egypt one of India's most important trading partners in Africa.
• The bilateral trade between India and Egypt has increased more than five times in the past 10 years, with a total trade of USD 26 billion in 2021-22.
• India allowed the export of 61,000 tonnes of wheat to Egypt in May last year to help address the latter's shortage of food grains.

Areas of Cooperation

• India and Egypt have signed agreements for cooperation in various areas including cyber security, IT, healthcare, culture, youth matters, and broadcasting.

Conclusion

• Developing better relations with Egypt is in line with India's "look west" policy and can help address environmental issues, terrorism, and security concerns.
• Improved trade and a more stable Middle East can benefit both developing nations in terms of economic cooperation, trade relations, infrastructure development, and energy concerns.
• India and Egypt have promising prospects for better relations, with immense potential for mutual benefits.